Chinese steel enterprises are accelerating their investment and layout in the Middle East region

Related research reports show that the scale of Middle East trade is expected to exceed $1.8 trillion in 2025, of which the proportion of non-oil trade will jump from 48% in 2023 to 55%. Emerging fields such as cross-border e-commerce, new energy equipment, and medical technology are growing at an average annual rate of over 25%.

Against the backdrop of the Middle East accelerating its economic diversification process, the demand for steel in the Middle East continues to rise. The "infrastructure construction boom" has created a huge market for steel demand. Projects such as urban rail transit and commercial complexes are being continuously promoted, and the demand for medium- and high-end steel products is growing. At the same time, the development of strategic industrial fields such as oil and gas, shipbuilding, and marine engineering also puts forward higher requirements for special steel products.

A set of data also illustrates this point: In 2024, the steel consumption in the Middle East was 57.9 million tons, and the steel demand in 2025 is expected to reach 59.5 million tons, a year-on-year increase of 2.8%.

However, compared with the rising demand for steel, the steel production capacity in the Middle East appears insufficient, and there are structural contradictions in the steel supply system.

Data shows that the local crude steel production capacity accounts for less than 3% of the global total, and more than two-thirds of the steel products rely on imports from outside the region, especially there is a large supply gap for high-end plates.

The huge gap between production capacity and demand makes the Middle East a blue ocean market that global steel enterprises are vying for.

Faced with the huge potential of the Middle East steel market, Chinese enterprises such as Baosteel Corporation, Shanxi Nangang Iron and Steel Co., Ltd., and Xinfeng Iron and Steel Co., Ltd. have invested and laid out in succession. By building production bases and supporting industrial parks, they are deeply involved in the construction of the Middle East steel industry.
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